PTG Opportunity Day1Q2019

1

AGENDA

• 1Q19 Highlights

• Industry Outlook

• Business Overview and Development

• Financial Performance

2

HIG

HLI

GH

TS

Meet targetsOil sales volume 18% YoY

LPG sales volume 55% YoY

EBITDA growth 51% YoY

Market share Retail market share 15.3%

Becomes number 2 in retail market share

Non-oilGross profit from non-oil increases 53% YoY

Brand creation of non-oil businesses

3

Industry Outlook

1Q

19

30

30.5

31

31.5

32

32.5

33

33.5

34

0

10

20

30

40

50

60

70

80

90

WTI (USD/BBL) Retail Price

(THB/L)

Exchange Rate

(THB/USD)

Fx (THB/USD)WTI (USD/BBL)HSD Diesel Price (THB/L)

Movement of WTI, Exchange rate and HSD Retail Price

59.2 – 66.1

31.3 – 32.9

46.5 – 60.1

31.3 – 32.6

5

Lower crude oil price

and strong THB

30 THB Diesel price cap announced in late May 18

6,033 5,874 6,006

2,674 2,800 2,755

8,707 8,674 8,761

1Q18 4Q18 1Q19

Diesel Mogas

Total Consumption Retail Consumption

Unit: ML

3,947 4,077 4,092

2,253 2,401 2,363

6,200 6,478 6,454

1Q18 4Q18 1Q19

Diesel Mogas

1.0% QoQ

0.6% YoY

-0.4% QoQ

4.1% YoY

Unit: ML

Oil Thailand Consumption

Total Thailand oil consumption increased

only 0.6% YoY and 1.0% QoQ.

Diesel consumption dropped 0.5% YoY,

while mogas consumption grew 3.0% YoY.

The slower growth was from the slowdown

in the exporting sector.

Retail oil consumption increased 4.1% YoY

and 0.4% QoQ.

In 1Q2019, there was positive retail oil

consumption growth in every region.

6

1,889 1,856 1,783

1Q18 4Q18 1Q19

-3.9% QoQ

-5.6% YoY

LPG Auto ConsumptionAll Channel Consumption

561 528 491

1Q18 4Q18 1Q19

-7.0% QoQ

-12.6% YoY

LPG consumption in 1Q2019 decreased

5.6% YoY and 3.9% QoQ.

The drop was mainly from the decrease in

auto LPG consumption of 12.6% YoY.

Auto LPG accounted for 27.5% of total

LPG consumption in 1Q2019.

The consumption of auto LPG continued

to drop 12.6% YoY and 7.0% QoQ.

This was due to the switching fuel product

as the price gap was narrower.

Unit: ML

Unit: ML

LPG Thailand Consumption

Unit: ML

7

Business

Overview and

Development1Q

19

8901,016 1,045

5244 64

1Q18 4Q18 1Q19

Retails Wholesale

+4.6% QoQ

+17.7% YoY

Retail 94%

Total 1,109 ML

Oil Sales Volume

PTG total oil sales volume in 1Q2019 rose

17.7% YoY and 4.6% QoQ.

Retail oil sales volume increased 17.4% YoY

and 2.9% QoQ.

The increase was due to the station

expansion and same store sales growth.

Unit: ML

Growth of Retail +2.9% QoQ+17.4% YoY

Wholesale 6%

Growth of Wholesale +45.8% QoQ+23.2% YoY

685 753 796

257307 313

1Q18 4Q18 1Q19

Sales Volume by Product

+5.7% QoQ

+16.1% YoY Diesel

72%

Mogas

28%

1Q19

9

+2.0% QoQ

+21.8% YoY

Diesel

Mogas

Unit: ML

Oil All channel Market Share

38.2%

13.6%12.6%

11.9%

9.8%

7.8%

6.1%

1Q17

37.6%

13.2%13.0%

11.6%

10.8%

7.4%

6.4%

1Q18

37.8%

13.2%13.2%

12.7%

11.4%

7.2%

4.6%

1Q19

Total Consumption

8,365 ML

Total Consumption

8,707 ML

Total Consumption

8,761 ML10

Total Consumption

6,188 ML

Total Consumption

6,484 ML

Total Consumption

6,837 ML

Oil Retail Market Share

38.3%

15.3%

15.0%

12.0%

11.9%

4.0%1.6% 1.8%

1Q1941.1%

15.1%12.6%

12.4%

12.2%

4.8%1.7%

0.1%

1Q17

40.4%

15.3%

13.7%

12.6%

11.8%

4.3%1.7%

0.1%

1Q18

11

19 29 30

1Q18 4Q18 1Q19

+2.6% QoQ

+55.3% YoY

LPG Sales Volume

LPG sales volume increased 55.3% YoY and

2.6% QoQ.

The growth of sales volume was from the

station expansion, services standard, and

PT Max Card loyalty program.

Unit: ML

LPG Sales Volume Growth

Same Store Sales 9% YoY

Station expansion 41% YoY

55.3%

12

Total Consumption

621 ML

Total Consumption

544 ML

Total Consumption

483 ML

Auto LPG Market Share

17.6%

17.1%

16.4%10.3%

6.2%

32.4%

1Q19

20.1%

18.5%

17.2%10.1%

3.6%

30.5%

1Q18

28.5%

17.6%

14.2%

7.8%

2.2%

29.7%

1Q17

13

1,789 127

49

Stand AloneMixed

78

NUMBER OF SERVICE STATION

1,531

COCO87%

1,916stations

DODO

258

13%

14

1 March 2019

1 stations

1

15 May 2019

147 stations

3

15 April 2019

54 stations

2

The leap growth of B20

200 stations

4

Mid June 2019

15

21581167

53

16

81 5

546 Touch Points

NUMBER OF NETWORKS

16

April June

October

2018 2019

50%

100%

80%

NOW

65%

17

Capacity Utilization Rate

Adding Service - Banking Agent

Now opened banking agent’s services at 50 Max Marts

Cash deposit (BAY) Cash withdraw Balance inquiry18

19

24 May 2019PT Maxnitron racing series 2019EVENT

SALES VOLUME EBITDA+16-20%O I L

L P G +55-60%+40-50%

2019 TARGETS

NETWORKS

Core Business

Non-oil Business

New Business

2,500 MB

500 MB

500 MB

BUDGET PLAN

OIL 2,000

NON-OIL 700

branches

*Oil & Non-oil branches

More than

connect dot to dot

“”

20

Financial

Performance

1Q

19

24,752

29,24328,655

1Q18 4Q18 1Q19

-2.0% QoQ+15.8%% YoY

RevenueUnit: Baht Mil l ion

Oil

97%

Non-oil* 3%

1Q19

Gross ProfitUnit: Baht Mil l ion

1,903 2,0002,537

7.70%6.80%

8.90%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1Q18 4Q18 1Q19

Gross Profit GPM

Oil

90.4%

CVS &

others

3.2%LPG

3.2%F&B

3.2%

1Q19

* Non-oil includes LPG, Logistics, Max Mart, Food and Beverages, and Lubricant

+26.8% QoQ+33.3%% YoY

In 1Q2019, revenue from sales and services was

28,655 million Baht, increased 16% YoY but

decreased 2% QoQ.

There was a fall in oil retail price 2% YoY and 7%

QoQ.

Non-oil revenue accounted for 3% of total

revenue.

Gross profit grew 33% YoY and 27% QoQ.

The growth was from the decrease in cost of

oil per liter by 4% YoY and 9% QoQ, resulting

in GPM improvement.

Non-oil gross profit accounted for 9.6% of

total gross profit.

22

EBITDAUnit: Baht Mil l ion

SG&A grew 20% YoY and 3.7% QoQ, which

mainly from the expansion of oil businesses and

non-oil businesses.

The expenses grew slower due to the selective

expansion strategy. EBITDA increased 51% YoY and 50% QoQ due to

the rise in sales volume and the marketing

margin, coping with expense management.

NET PROFITUnit: Baht Mil l ion

948 9591,435

3.80% 3.30%

5.00%

-5.00%

-3.00%

-1.00%

1.00%

3.00%

5.00%

7.00%

0

500

1,000

1,500

2,000

2,500

1Q18 4Q18 1Q19

EBITDA EBITDA margin

269 176519

1.10% 0.60%1.80%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

0

200

400

600

800

1,000

1,200

1,400

1Q18 4Q18 1Q19

NI NI margin

Net income was 519 million Baht, grew 93% YoY

and 195% QoQ.

Therefore, the NPM also improved.

EPS in 1Q19 rose to 0.31 baht from 0.16 baht in

1Q18.

+194.9% QoQ+92.9%% YoY

+49.6% QoQ+51.4%% YoY

23

PROFITABILITY LEVERAGE RATIO

6.80%3.60%

10.30%

21.30%

13.30%

36.50%

1Q18 4Q18 1Q19

ROA ROE

1.5

1.621.6

1Q18 4Q18 1Q19

Interest Bearing Debt to Equity

Profitability recovered as the Company’s profit

increased.

However, PTG is building the non-oil businesses

to stabilize the profitability.

The leverage ratio slightly drop form the year

end 2018 due to the selective investment of

branch expansion.

PTG manages its leverage ratio by balancing

investment budget with operating cash flow.

24

(x)

OPERATING CASH CYCLE CASH FLOW

Unit: Baht Mil l ion

7.86 6.66 5.87

0.59 0.84 0.99

16.05 16.54 17.60

(7.60)(9.04)

(10.75)

2017 2018 1Q19

Day in Inventory Avg. Collection Period

Avg. Payment Period Cash Cycle

PTG have negative operating cash cycle of

10.75 days.

The better operating cash cycle due to the

better supply chain management.

2017 2018

PTG continued to expand its oil and non-oil

businesses to cover all the targeted areas. However, the Company applies focus strategy

in business investment corresponding with the

operating cash flow.

Unit: Day

25

ASSETS LIABILITIES AND

EQUITY

Unit: Baht Mil l ion

The increase of total liability came from the

short-term borrowing to support the growth of oil

sales volume.

1,989 1,758 1,8482,501 2,586 2,550

8,86511,026 11,296

2,311

2,874 2,88017,985

20,939 21,731

2017 2018 1Q19

Others Prepaid Leasehold Right & Rental

PP&E Investment

Inventories Cash and Cash Equivalents

2017 2018

5,119 5,476 5,997

2,120 1,400 2,150

4,520 6,335 5,788

5,9805,792

7,227

17,985

20,939 21,731

2017 2018 1Q19

Other Liabilities L-T Borrowing

Trade and Other Payables S-T Borrowing

Equity

2017 2018

Unit: Baht Mil l ion

The total assets increased due to the business

expansion of oil and non-oil businesses.

26

1Q16 1Q17 1Q18 1Q19

50%

38%

42%

1Q16 1Q17 1Q18 1Q19

44%

47%

19%

1Q16 1Q17 1Q18 1Q19

19%21%

26%

Employee- related expenses

Rental and

leasehold right expenses

Depreciation expenses

YoY YoY YoY

27

Cost Austerity

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PTG MILESTONES

31

32

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